Live Game
Live-Game Market Overview ⏳
The live-game market in LEVR presents a contrast to the pre-game market, characterized by the following features:
Dynamic Price Fluctuations: Unlike the relatively static pre-game market, the live-game market experiences significant price movements. Token prices vary considerably to reflect the changing odds during a live game.
Fully Liquid, Leveraged Tokens: Tokens that represent leveraged bets, created in the pre-game market, are fully tradable during the live game.
Health Factor per Position: Considering the leverage inherent in all tokens, a health factor becomes crucial for managing positions. Liquidation is triggered when this health factor turns negative.
Requirement for Full Cash Transactions: Since in-game creation of leverage positions and borrowing from the MVP Pool are not options during the first beta test, all transactions in the live game market require full cash payments.
Peer-to-Peer Trading Mechanism: The platform facilitates in-game trading through an order book model, optimizing transaction speeds for buying and selling live-game positions among bettors.
Dual Price Charts: Reflecting the inverse correlation of odds for each token, two opposing price charts represent each game token.
Game-Specific Time Frames: The horizontal axis of the chart is marked with time units pertinent to the specific game, such as quarters, offering a tailored view different from standard time frames like days or weeks.
The ability to buy and sell your positions at any time during a game means that it is possible to profit from the losing teams and avoid liquidation, provided that you sell your tokens whenever your odds are out of favor, and buy tokens when the tide returns.
Live-Game Market Example 🎓
Examining the chart above, it's evident that holding BOS tokens with 5x leverage would have led to liquidation during the price drop from $0.5 to $0.2 on the purple line, just before Q1. This outcome occurs despite the Boston Celtics eventually winning the game.
A user would have been able to capitalize on the initial price surge of BOS tokens to $0.5 at the game's start, by selling into the order book at this price. Subsequently, repurchasing the BOS tokens at $0.2 in the third quarter would have been a follow-up strategic move, allowing for a profitable ride to victory.
The unpredictable and exhilarating nature of games necessitates active live-game trading, especially during game-changing moments.
This is why LEVR has implemented an order book for its live-game markets, capitalizing on the necessary speed and high throughput for efficient peer-to-peer trading. The rapid transaction capabilities of Order Books are a distinct advantage over conventional sportsbooks, enabling bettors to manage their positions in real-time, whether to avoid liquidation or to secure profits.
To tie both markets together, LEVR meticulously orchestrates its pregame market to limit the protocol's exposure to a predetermined threshold (exceeding 0.5% of MVP Vault TVL). With the commencement of the live-game market, bettors can engage in PvP trading via the in-game order book without subjecting the protocol to additional risk.
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